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Indian automaker Mahindra and Mahindra reported a better-than-expected second-quarter profit on Friday, driven by strong demand for its passenger vehicles and farm equipment.

The company posted a sharp 46% jump in profit as total vehicles sold soared 75% from a year ago to 174,098 units, while it had open bookings for more than 260,000 sports utility vehicles.

Mahindra reported a profit after tax of 20.9 billion Indian rupees ($259.34 million) for the three months ended Sept 30, up from 14.33 billion a year earlier.

Analysts were expecting a profit of 19.88 billion rupees, according to Refinitiv IBES data.

The company's farm equipment sector saw the highest second-quarter volume while the auto segment achieved the highest-ever quarterly volume, Mahindra said in a statement, adding that exports for both vehicles and tractors remained strong.

While demand for passenger cars has been strong, Indian automakers, including Mahindra, are seeing an easing of semiconductor shortages and higher raw material costs, which have hampered the industry since the pandemic.

Passenger vehicle sales for September in India nearly doubled to 307,389 units from a year ago.

Revenue from operations jumped 56.5% during the quarter to 208.39 billion rupees.

Earlier, rival Maruti Suzuki India reported a four-fold jump in quarterly profit, while Tata Motors saw its loss narrowing from a year ago on strong demand.

Meanwhile, German-based Mutares has offered to acquire a controlling stake of 80% in Mahindra-owned Peugeot Motocycles, the companies said on Thursday.